J.P. Morgan and PNC are among several potential buyers in talks to acquire SVB Financial Group, according to sources familiar with the matter. The deal would exclude the commercial bank, SVB Bank, which is currently under US government control.
Offer for SVB Acquisition
The acquisition of SVB Financial Group’s other divisions could stabilize the company’s businesses, which have been impacted by the collapse of SVB Bank. The process to sell SVB Bank continued over the weekend, with potential bidders reportedly cooling on their pursuit.
SVB Financial Group is a holding company that, in addition to its SVB Bank business, has three other segments – asset management, private wealth, and a securities business. Apollo Management and Morgan Stanley are also part of the discussions around the holding company, according to sources.
Apollo’s interest is expected to center around financing a transaction or acquiring parts of the business, the sources added. Worth noting is that the three entities, known as SVB Private, SVB Capital, and SVB Securities, are considerably smaller than the SVB Bank entity now under FDIC control.
In a separate process, Bank of London has submitted an offer to buy Silicon Valley Bank UK, the company said on Sunday.
Stability through Acquisition
The process around the holding company is still fluid, sources said, and will continue to play out over the next couple of days. A buyer for the other SVB divisions could stabilize those businesses, which are being impacted by the collapse of SVB Bank. The potential acquisition of SVB Financial Group could have significant implications for the financial sector, particularly given the involvement of major players such as J.P. Morgan and PNC. The move could also have broader implications for the US economy, given the importance of the banking sector to overall economic growth.
The current state of the process is uncertain, and it remains to be seen whether any of the potential buyers will follow through with an acquisition. However, if a deal is reached, it could provide much-needed stability to SVB Financial Group’s other divisions, which have been impacted by the collapse of SVB Bank.